Below are some key highlights from the speech delivered by Mario Draghi, President of the ECB, at the Banque Nationale de Belgique, Brussels, 26 October 2018.
- The absence of inflationary pressures in recent years is well-explained by two factors, and neither would justify a change to the monetary policy framework.
- Today we are witnessing major demographic and technological changes, but these do not necessarily imply that structural factors are the main drivers of inflation.
- Central banks are powerful, independent and unelected.
- This combination can only be squared if they have a clearly defined mandate for which they are held accountable by the public.
- The central bank should not be subject to fiscal or political dominance and should be free to choose the instruments that are most appropriate to deliver its mandate.
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